Bharti Airtel shares rise 10%; data demand, tariff hikes helpAdministrator_India | May 19, 2020 | 0 | Market
Shares of Bharti Airtel Ltd. surged 10% to a record high on Tuesday, as customers upgraded their data and calling plans and the Indian telecom operator raised mobile tariffs, helping boost average revenue per user.
The company’s average revenue per user, a key metric for the telecom sector, rose 25% to 154 rupees at its India mobile services business during the quarter ended March 31.
Airtel said it added 12.5 million 4G subscribers in the March quarter.
Indian telcos raised calling and data plan prices in the last few months after the country’s Supreme Court upheld a demand by the telecoms department that wireless carriers pay 920 billion Indian rupees ($12.11 billion) in overdue levies and interest.
New-Delhi based Airtel said on Monday it set aside 56.42 billion rupees for one-time spectrum charges, resulting in a quarterly net loss of 52.37 billion rupees for the three months ended March 31, compared with a profit of 1.07 billion rupees a year earlier.
Total revenue, however, rose 15% to 237.23 billion rupees. Indians found themselves confined to their homes during the last week of March due to a nationwide lockdown to contain the spread of the coronavirus outbreak.
Rival Reliance Jio Infocomm, controlled by billionaire Mukesh Ambani, reported a nearly three-fold rise in March quarter profit.